Private Equity Drives Growth in Yale’s Endowment

A recent article in the Yale Daily News highlights the importance of private equity to Yale’s endowment. According to the story, the Yale Investment Committee released a report indicating its intention to increase its private equity target to 35 percent of the total endowment, up slightly from 34 percent last year. The report highlights the fresh thinking and operational expertise private equity brings to their investments:

“In the context of private equity, good managers are able to add their expertise to the management of companies, helping to grow the value of businesses as opposed to just predicting their performance, the report said…”

Yale is not alone in their commitment to private equity. Last summer, Notre Dame Chief Investment Officer, Scott Malpass penned an op-ed in Pensions & Investments(free with registration), saying:

“Notre Dame’s 24-year partnership with private equity has been a resounding success. By investing in private equity, Notre Dame has provided capital to help start, grow and improve thousands of companies. As a result, Notre Dame has been fortunate to participate in the creation of valuable new jobs and technologies for society, while also generating financial aid for thousands of deserving young people and putting the university in a more secure financial position.”